China Metal Recycling Holdings Limited Scrap King Gets Scrapped Case Study Solution


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China Metal Recycling Holdings Limited Scrap King Gets Scrapped Case Study Analysis

Background and Facts

China Metal Recycling Holdings Limited Scrap King Gets Scrapped an office supplies retailer for little as well as moderate sized businesses has lately been involved in preparing for a merging with its rival House Deport, which has actually impacted effectiveness levels in departmentswith the senior manager associated with legal problems put forth by the government Profession Payment. With the Advertising and marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With challenges in the form of a prospective social modification as well as reduced employee morale, the organization is in need of a total reengineering effort at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing division of China Metal Recycling Holdings Limited Scrap King Gets Scrapped is increasing uncertainty in the workplace causing various difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical choices since Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Trade Compensation's intervention in the process. Given the truth that the store has a worldwide visibility with branches in UK, USA, Canada and Germany, political consider each of these countries may be able to impact performance or critical goals. Federal Trade Payment's antitrust match against the merging used up beneficial time of the company's senior administration recommending that 'political' factors can have major effects for a worldwide service.

Economic Factors: Financial factors such as the appearance of small companies in the global circumstance suggest that China Metal Recycling Holdings Limited Scrap King Gets Scrapped is prospering in a setting where there is possible development of organisations. Fact that store clients are primarily looking for workplace products for home workplaces recommends that the market has an increasing pattern of entrepreneurs and also home based businesses.

Social factors: Social fads in the economic climate show that consumers are trying to find benefit as well as appealing prices. Marketing research demonstrates how the client for China Metal Recycling Holdings Limited Scrap King Gets Scrapped lacks recognition about finding remedies which can use a mix of convenience as well as inexpensive.

Technical factors: Technology plays a crucial duty in China Metal Recycling Holdings Limited Scrap King Gets Scrapped's business technique specifically as the company is piloting Modern technology facilities which would supply technology sales and also assistance in the form of memory upgrades, outer installments. (Recap of PEST in appendix 2).

OB Issues and also Symptoms.

Several underlying Business Behavior issues can be seen in China Metal Recycling Holdings Limited Scrap King Gets Scrapped's case as highlighted in this area.

Concerns regarding social adjustment: There is apprehension concerning a cultural adjustment that would occur once Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with most of the staff members already showing unhappiness over this possible action. This predicted modification has actually created anxiety in the office which has been paired with the previous stress and anxiety of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of personnel that can match the difficult environment of a fast-paced company. Not just does this result in trouble in locating the ideal individuals, it places tension on brand-new hires as can not withstand the rate as well as pressure that the organization anticipates them to birth.

Double Coverage Lines: Newbies discover this business culture troublesome as well as hard to deal with especially as populated line relationships are implied to be weaker as a whole as well as unbiased setup as well as efficiency examination is still done by the strong line supervisor. This indicates that newcomers might lose quality regarding their particular roles and goals especially as dotted line reporting does not keep them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been guessed that the latter would take Krasnow's setting came as a strike to her morale. Lewis may have been qualified as well as ideal for the job yet the fact that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Task Insecurity: Worry as well as instability can be recognized as 2 major issues that Lewis would certainly be taking care of specifically as the merging has actually now be cancelled as well as 2 senior executives of the advertising and marketing department would be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining regarding a social adjustment however would likewise need to show herself in her new function.

Inappropriate Monitoring Style of Leader: Lewis's management design as well as its incompatibility with the marketing department's function can additionally be seen as an OB challenge especially as she has been used to taking care of issues in the procedures division where employees are shown to focus on procedures and get them. The advertising department on the various other hand can be viewed as a group of individuals that are made use of to being nurtured by Krasnow who focused a lot more on output than processes.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 departments, advertising, merchandizing as well as operations specifically over the allotment of the advertising and marketing mix can be determined as one more OB concern. Although the advertising and marketing division does not share the same vision as the other two departments pertaining to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not concur over the advertising mix allocation amongst each other either.

Fragmentation in Marketing Division: Disintegration between the advertising and marketing departments can be determined as one more OB issue which could require further attention. The reality that the advertising and marketing sections in the marketing division are separated is stopping both departments from obtaining from each various other's experience and also expertise. Combination of advertising and marketing with retailing as well as operations would certainly come to be more difficult if the advertising and marketing department itself is degenerated which can be another possible OB issue.

China Metal Recycling Holdings Limited Scrap King Gets Scrapped Analysis

Various concepts have actually been utilized to discuss the situations to obtain additional clarity about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are passive as well as careless, have little passion and also stand up to change. The tough version of this theory highlighted coercion, limited controls, dangers and also punishments. Over time it creates reduced efficiency, refined sabotage as well as rivalry (Bargain, 2003). Although the scenario at China Metal Recycling Holdings Limited Scrap King Gets Scrapped is not completely complying with Theory X, it can be seen that new hires are discovering this atmosphere instead stressful which may at some point cause a greater inclination of the monitoring in the direction of Theory X. According to McGregor's promoted sight, which he called Theory Y, the necessary task of the administration is to prepare business problems to make sure that people can accomplish their very own objectives best by routing their efforts in the direction of business rewards. If people discover no contentment in their job, the monitoring would have little choice but to count on concept X as well as outside control (Deal, 2003). Also while analyzing Lewis's administration style, concept X might have appropriated in the operations department to some extent however the Marketing department would certainly require dependence on Theory Y to get the creative thinking and creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's worry about bringing harmony between the advertising and also marketing department is concerned, this would originally lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing and marketing department's job, there may be the very same preliminary separate which could lead to the second phase of 'storming' where the groups test one another.

When individuals are offered with adjustment, they go into stage one and so there may be emotions like despair, unpredictability, irritation, temper, anxiety, rejection as well as disorientation.The circumstance at the marketing division of China Metal Recycling Holdings Limited Scrap King Gets Scrapped is similar so Lewis can obtain comfy with the idea that it is not remarkable behavior. It is throughout this stage that Lewis will certainly have to provide guidance to the department so that they can find a sense of direction. It can be seen how Krasnow has already made this shift easier by making Lewis get involved in the department a year before his actual departure.
Vrio Analysis
Maslow's Requirement hierarchy: The OB problem pertaining to instability at the office has been activated to start with by the change in administration and second of all by the reality that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the significance of 'protection needs as being a lower degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe and unharmed' is at the 2nd degree of needs. Before a worker can be made to develop mentally, he requires to have his 'Physiological 'and 'Security' requires satisfied. This indicates that unless the personnel are made to feel protected concerning their present work status in China Metal Recycling Holdings Limited Scrap King Gets Scrapped they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for China Metal Recycling Holdings Limited Scrap King Gets Scrapped Case Study

Implication of Analysis.

The OB analysis has considered numerous concepts to understand exactly how to cope with the existing circumstance handy. The complying with three choices have been suggested to assist Lewis handle the organizational obstacles in the advertising and marketing department. Each of these choices has been proposed for alleviating the shift required to bring the advertising division in accordance with the demands of the market as well as for making the cultural modification that would certainly comply with when the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Manufacturing features. Integration of Advertising with Procedures.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merging days has competence in business-to-business marketing along with company and retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both marketing as well as advertising features.

The benefit of this technique is that it will certainly integrate the two functions while decreasing the requirement for employing an extra source for advertising and marketing. In addition to this, Lewis would be heading the advertising and marketing department and also all the same her substitute would be needed for the current role that she is performing. The disadvantage of this choice is that exterior hiring may bring about resentment from internal workers who might be eying the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Offered the competitive stress and also high top quality job needed from the marketing agency, it is advised that Lewis should enable the manufacturing device to be a different function from the advertising and marketing unit. Considering that many advertising companies had these 2 functions as separate systems, it makes even more feeling to follow the standard.

Assimilation of Advertising And Marketing with Workflows: Given that Lewis is currently caring for the marketing and also procedures divisions at the same time; it makes good sense to integrate the two features because she has been successfully dealing with both ends. The truth that both departments currently have significant differences over allowance of sources suggests that this combination may have the ability to bring about consistency specifically as Lewis would be heading both ends.However there are various drawbacks of this step especially as it would put way too much concern over Lewis's shoulders. The truth that Lewis has to adapt her administration design for the advertising and marketing department recommends that these two departments would be culturally diverse. In addition to this, Lewis might not be able to apply one sort of management style to both divisions which can cause inefficiency in either among the two functions.


An examination of the 3 alternatives indicates that integration of advertising and marketing as well as operations would certainly not be a viable relocation due to the large differences between both departments although that presently Lewis is handling both. While splitting up of the manufacturing function might have been a desirable move for the advertising and marketing department, the truth that it would certainly mean placing a third function under Lewis's wing implies this must be avoided. The combination of the advertising and marketing department is the most effective option in terms of getting the optimum results from the department. An activity prepare for this alternative is talked about below.

Action Plan.
Lewis will take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

Judith Shapiro will certainly be employed to take Lewis's location as SVP of marketing and advertising.

Manufacturing function will continue to be part of advertising under advertising feature.

Lewis will certainly separate herself from operations.

A democratic management style with staff member empowerment will be utilized in advertising and marketing division.

Open door policy as well as focus on cross departmental communication will be focused on getting rid of disharmony.

Contingency strategy.

If the assimilation does not work out as planned, a contingency plan would certainly adhere to which would divide the manufacturing feature from the marketing function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing division without an SVP. In that case the production feature will most definitely be separated by putting it under an SVP manufacturing.